(Note that the regulations do not provide for the USG to retain any interest in “used supplies.” They are essentially understood to be “expended” or “used up.” See Property Disposition at Closeout.)

Exempt property – the federal funder has vested title to this property in the recipient without further obligation to the federal government. Property for which title vests in the government of the participating country (rare) and property that is donated to beneficiaries in the participating country (more common) seem to be treated similarly to exempt property.